García Hiernaux, Alfredo AlejandroGuerrero Burbano, David Esteban2023-06-192023-06-192015https://hdl.handle.net/20.500.14352/41629This paper shows that price level trends in many of the EMU countries evolve with different patterns and that these patterns will not converge in the long-run. We propose that the hypothesis of price convergence should be evaluated and tested employing the relative prices. To this aim, we: (i) define the asymptotic price level convergence in mean and variance, (ii) provide a model for relative price levels that includes a transition path, and (iii) show how to properly test the definitions stated. Our results show that only French and German price levels converge in mean to a zero gap in the EMU while some others, not many, converge to a nonzero significant gap. This should be a matter of concern for the European monetary policy makers as it implies that the monetary policy does not affect all the EMU members equally.engAtribución-NoComercial-CompartirIgual 3.0 Españahttps://creativecommons.org/licenses/by-nc-sa/3.0/es/technical reporthttp://www.ucm.es/icae/https://www.ucm.es/fundamentos-analisis-economico2/documentos-de-trabajo-del-icaeopen accessE30, E31, E52, C22, F15Price convergencePrice levelsRelative priceInflationEMUUnión económica y monetaria europea (Unión Europea)DineroGeografía económica5310.08 Acuerdos Monetarios Internacionales5304.06 Dinero y Operaciones Bancarias5401 Geografía Económica